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McDermott Leads Surge in Energy Storage Deals Amid Growing Demand for Tax Credit Transfer Transactions

McDermott has worked on nearly three dozen post-IRA transactions, largely involving large standalone energy storage deals. The company has also worked on over 25 direct transfer deals, where developers transfer credits typically to a corporate buyer. These deals are valued at US$30 million to US$300 million with Fortune 500 companies. These transactions have been largely dominated by storage deals, while hybrid tax equity deals have been evenly distributed across storage, solar and wind. The move towards debt-plus-transfer deals has led to a new market for projects that previously struggled to secure tax equity to support construction debt. This is particularly suited to large standalone storage projects in the Texas market run by grid operator ERCOT. Despite this progress, the federal tax credit transfer market is still not yet fully implemented.

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